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Cardano founder Charles Hoskinson criticizes the new infrastructure bill seeking crypto taxes

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  • The Cardano founder called the new bipartisan infrastructure bill evil for crypto.
  • The bill will make it mandatory for all non-custodial players to report KYC and customer details to the IRS.

Cardano founder Charles Hoskinson has joined the discussion about levying crypto taxes as proposed in the infrastructure bill. Earlier this week U.S. Senators proposed the implementation of crypto taxes in its new infrastructure bill. Thus, any transactions made in crypto for infrastructure dealing will attract taxes generating an additional $28 billion in taxes.

The proposal has received strong criticism from the crypto community. On Friday, July 30, crypto lawyer Jake Chervinsky discussed a new provision that has been added expanding the Tax code’s definition of “broker” that captures everyone in crypto. Interestingly, this also includes some non-custodial players like miners to have a mandatory KYC.

The Tax code will also mandate IRS reporting! Thus, brokers will have to submit Form 1099 to their customers as well as to the IRS. For this, brokers will need to collect all customer data like name, address, phone number, etc.

The lawyer further goes to explain that the law involves every section of the crypto market. This includes DEX, P2P, PoW miners, PoS validators, and many more. Hoskinson called it a “terrible move for crypto”. On his Twitter timeline, the Cardano founder wrote:

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Bad laws destroy the economy. Please people take this one seriously. It will be terrible for Crypto.

The changing regulatory landscape

Many from the crypto industry have acknowledged the active participation of regulators in the crypto space. Some institutional players also noted that better regulations will bring more clarity, in turn, helping the crypto markets to evolve further.

However, there could be more to this than what meets the eye! Decoding the proposal for average and retail investors, lawyer Chervinsky also explains that that the definition is very broad. Thus, every participation in the crypto economy including DEX, DeFi participants, liquidity providers, protocol governors, etc, could be affected.

The lawyer explains that unlike brokers, it will impossible for non-custodial actors like miners, LPs, and others, to get all the information required for Form 1099s. Chervinsky notes that the matter is serious and the community should not take it lightly.

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Most crypto legislation goes nowhere, so it’s easy to ignore. Not this time. This provision is part of the bipartisan & otherwise popular infrastructure bill, which is moving quickly through Congress & is highly likely to pass.

The infrastructure bill is estimated to cost > $1 trillion. Congress scored the new “broker” definition at $28b in added tax revenue. I have no clue how they got this number, or how it’s even possible to calculate. Regardless, this is no way to handle major new regulations.

The lawyer and Hoskinson further call it a misguided provision and good more harm than good to “U.S. interests”. The lawyer notes that squeezing miners with this bill will be like following China’s path. The U.S. cannot afford to make this blunder, he notes.

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The World Comes Together on Cardano Summit 2021 from Sydney to Vancouver

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Cardano community have to state that from Sydney to Vancouver, via Perth – we’re bringing the world together around Cardano for the Summit.

Bringing the Cardano Summit 2021 to VANCOUVER! Celebrate discussing blockchain capabilities and mingling with fellow Cardano Community members.

Regional promotions and calls are viral everywhere on Twitter pages and social media networks:

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Calling all Perth based Cardanians.  We’re hosting the #Cardano Summit Perth event this Sunday, 26 Sep from 2pm-9pm!

Who’s in Johannesburg? Have you registered for the Cardano Summit 2021? Only a few days to go and only a few spots available – sign-up now to save a seat.

Join the Cardano Summit 2021in Kumasi to learn about the emerging cryptocurrency revolution, blockchain technology and digital finance.

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If you’re in or near Accra, Ghana, register for the event below to be part of the Cardano Summit 2021 – the biggest Cardano event ever.

Great lineup of speakers for the Cardano Summit India. SPOs, Projects, DApps, community engagement activities and more.

Cardano Summit 2021 Lagos Nigeria will be held on September 26, 2021. At Eko Hotel and Suites there will be free T-Shirts, Hoodies, and water bottles for early attendees. Stay tuned for further updates or call.

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It’s going to be the BIGGEST, BADDEST Cardano event there ever was! 40 Community-led events 32 Countries, 60 Community hosts, and 7 Main summit events.

For those who are new, Cardano is an excellent blockchain technology that serves as the face of a secure and sustainable blockchain facilitating ground-breaking use cases.

Cardano focuses on tackling issues faced during blockchain adoption on a large scale. Cardano seeks to reign issues like scalability, interoperability, and sustainability through the development of design principles and engineering best practices.

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The world comes together on Cardano.  One week from now, IOHK and Cardano teams and the global community will gather for the biggest blockchain event ever for a mix of virtual and live events from around the world.

Initially Cardano was able to deal with 10 transactions per second.  However with Hydra Layer 2 scaling arrangement Cardano will be able to handle more than 1,000,000 transactions per second.

Ouroboros a chain-based PoS protocol relies on randomly chosen leaders to approve blocks. Just like other blockchains, the node that adds the next block receives a reward for its efforts.

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Cardano is energy efficient, Cardano: 6-gigawatt hours; Bitcoin: 130 terawatt-hours; Ethereum: 50 terawatt-hours.

Community response:  Pump Cardano. I am so excited about it.

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Following the latest ‘non-event,’ what next on the price front for Cardano

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It has been almost two weeks since Alonzo went live on Cardano’s network. The narrative before the hard fork was largely conformist, one that proclaimed ADA’s price would soon surge to new heights after its release.

The hard fork, however, turned out to be a ‘non-event‘ and did not impact the token’s price much. In fact, in the days that followed the release, ADA’s price dropped to as low as $1.98. Ergo, one may argue that ADA, just like the market’s other tokens, became a victim of the pessimistic broader market trend.

Well, the same holds true to a certain extent, particularly because ADA’s dependency on the market’s other cryptos has increased over the last couple of weeks. In fact, it now shares a correlation of 0.78 and 0.74 with Bitcoin and Ethereum, respectively.

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Apart from this, the deteriorating state of on-chain metrics has created a cascading effect on the alt’s price. So, unless and until the same improves, a price trend reversal seems to be out of the question.

State of the network

Well, inspecting the state of the network would give us a fair idea about the direction in which Cardano is heading. As per data from CardanoScan, the transaction count on the network has been quite stagnant over the last couple of days, despite crossing 111k on 17 September.

This, quite obviously, indicates that not many people have been using Cardano’s network of late.

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Source: cardanoscan.io

What’s more, the average transfer value too has been spending more time towards the lows of late. Notably, the same witnessed a massive spike during the initial few days of September but subjected itself to a freefall right after that. The active address ratio as well, for that matter, has been on the decline. The same fell from 9.17% to 2.45% over the period between 7 to 24 September.

By and large, this implies that users who have been active are merely trying and testing the network at this stage. One can argue then that the Cardano market is devoid of some solid momentum at the moment.

However, there’s a silver lining to this scenario too.

Source: Messari

All’s not lost

As far as Q4 is concerned, a host of launches are already lined up for Cardano. The introduction of Cardax DEX would allow users to trade ADA for other native tokens. Notably, the exchange would have its own utility token – CDX. Further, GREED is also set to launch as one of the blockchain’s first tokens.

Additionally, right from Liqwid, an open-source and non-custodial liquidity protocol, to SingularityNET, a platform that lets users create and monetize AI services at scale, several noteworthy projects are set to make use of Cardano’s ecosystem in the coming weeks. In effect, a new set of users would be using the blockchain.

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Thus, unless and until Cardano’s adoption hastens up, a prominent trend reversal seems to be unlikely. In effect, only if the aforementioned future events actually end up contributing to the network’s growth, it would make sense to anticipate a direct impact on the altcoin’s price.

Thus, it’d be interesting to see if the ‘non-event’ tradition continues or Cardano successfully frees itself from the shackles of the same.

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Cardano Partners with Chainlink to Integrate Oracles for Advanced Smart Contracts

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Cardano joins forces with Chainlink to provide extra support for developers building smart contracts by integrating oracles

The Cardano team has just published a blog post, announcing a partnership with Chainlink that will result in integrating Chainlink’s oracles. These will help developers build smart contracts for Cardano DeFi apps.

The collaboration was announced during the Cardano Summit today, on September 25.

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Cardano teams up with Chainlink

Chainlink’s oracle networks supply data to blockchain networks and allow smart contracts to work with results of elections, sports statistics, crypto rates, etc. They can also operate weather data (Chainlink is now working with some fintech companies that are bringing parametric insurance to South Africa) and other types of data as well.

Chainlink oracles help run hybrid smart contracts on any DLT network. Presently, Chainlink secures billions of USD in DeFi apps, gaming apps, platforms related to insurance and other top industries.

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Chainlink to power Cardano smart contracts

The integration of these oracles in the Cardano DLT will allow dev teams to supply institutional-grade data provided by Chainlink into their smart contracts. The oracles will support prediction apps that deal with sports data, weather data necessary for parametric insurance apps; they will be applied in the sphere of gaming and digital collectibles, like NFTs, etc, via multiple partnerships.

Founder of IOHK Charles Hoskinson stated that Chainlink oracles are necessary for advanced smart contracts and they will provide real-world data to the Cardano blockchain. He emphasized that Cardano intends to provide developers with best tools for creating solutions that will be of actual use.

Hoskinson believes that Chainlink oracle integration will also provide a perfect foundation for the DeFi ecosystem on Cardano.

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